WDAY - Workday, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
164.80
-1.58 (-0.95%)
At close: 4:00PM EST
Stock chart is not supported by your current browser
Previous Close166.38
Open165.84
Bid0.00 x 900
Ask0.00 x 900
Day's Range163.83 - 166.30
52 Week Range117.72 - 226.83
Volume2,012,934
Avg. Volume2,105,592
Market Cap38.187B
Beta (3Y Monthly)1.49
PE Ratio (TTM)N/A
EPS (TTM)-2.23
Earnings DateDec 3, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est211.91
  • American City Business Journals

    Unlimited paid time off does not mean an unending vacation at these 14 Bay Area companies

    Los Gatos-based Netflix kicked off the nationwide popularity of unlimited vacation time, a perk that employers will find has some surprising results around the holiday season.

  • This Big-Name Stock Just Won't 'Work'
    TheStreet.com

    This Big-Name Stock Just Won't 'Work'

    Here's why much-hyped Workday just doesn't look like a good investment (hint, it's never shown positive cash flow or profitable quarters).

  • Cramer Weighs In On Nike, Beyond Meat And More
    Benzinga

    Cramer Weighs In On Nike, Beyond Meat And More

    On CNBC's "Mad Money Lightning Round," Jim Cramer said Mastercard Inc (NYSE: MA ) is a stock that should be at $300. He believes the CEO did a great job and he wants to buy the stock. Lattice ...

  • Here are the winners and losers in Workday's $540M purchase of ScoutRFP
    American City Business Journals

    Here are the winners and losers in Workday's $540M purchase of ScoutRFP

    Silicon Valley VCs have done well on their investment in the spending management software company but Coupa Software appears to have a more formidable competitor after the deal.

  • Coupa Stock Falls As Workday Purchase Heats Up The Competition
    Investor's Business Daily

    Coupa Stock Falls As Workday Purchase Heats Up The Competition

    Workday's purchase of Scout RFP for $540 million in cash heats up competition with Coupa Software, analysts said Tuesday. Coupa stock tumbled 8.5% on the acquisition as Workday also slipped.

  • MarketWatch

    Workday to buy Scout RFP for $540 million in all-cash deal

    Workday Inc. (NASDAQ:WDAY) said late Monday it has agreed to buy Scout RFP, a cloud-based platform for sourcing and supplier engagement, for $540 million in an all-cash deal. The deal is expected to close in the fourth quarter of Workday's fiscal year 2020, which ends Jan. 31, subject to regulatory approval and other conditions, Workday said. Workday shares were flat in the extended session Monday after ending the regular trading day down 0.1%.

  • GlobeNewswire

    Workday Announces Intent to Acquire Scout RFP

    Workday, Inc. (WDAY), a leader in enterprise cloud applications for finance and human resources, and Scout RFP, a leading cloud-based platform for strategic sourcing and supplier engagement, have signed a definitive agreement under which Workday will acquire Scout RFP in an all cash transaction. “Scout RFP is an industry leader that is loved by procurement teams who are undergoing a significant shift to better optimize spend,” said Aneel Bhusri, co-founder and CEO, Workday. “As a Workday Ventures portfolio company and Workday Software Partner, we’ve been incredibly impressed with Workday's team, culture, customer focus, and products,” said Alex Yakubovich, CEO, Scout RFP.

  • Moody's

    Automatic Data Processing, Inc. -- Moody's affirms ADP at Aa3; outlook is stable

    Despite the company's strong market position, Moody's considers ADP's competitive landscape which includes pressures from rival service providers such as Paychex, Inc. (unrated), Ceridian HCM Holding Inc. (B2, stable) and Ultimate Software Group, Inc. (The) (B3, positive), long-established enterprise application software vendors, such as Oracle Corporation (A1, stable) and SAP SE (A2, stable), and more recent entrants such as Workday, Inc. (unrated) whose solutions have been specifically built as single application platforms in the cloud. The company's credit rating also considers ADP's exposure to economic cyclicality with respect to employment levels and interest rate volatility as well as shifting structural trends and work arrangements within the company's markets. Additional risks to the issuer's credit quality include ADP's smaller scale relative to its rated peer group, service line concentration, limited geographic diversity, and potential reputational risk in the event of a data security or customer privacy breach of the company's systems.

  • Innovation Is Key to Shopify Stock’s Success
    InvestorPlace

    Innovation Is Key to Shopify Stock’s Success

    Since late August, Shopify (NYSE:SHOP) stock has come under considerable pressure. Note that the shares have gone from $406 to $310. But then again, there has been a selloff of many high-flying tech stocks, such as Zscaler (NASDAQ:ZS), Workday (NASDAQ:WDAY) and Zoom Video Communications (NASDAQ:ZM).Source: Jirapong Manustrong / Shutterstock.com However, the recent volatility of Shopify stock looks more like a blip, considering that SHOP stock has soared more than 120% this year. So what now? Will Shopify stock resume its winning ways?Well, this week the company reported its third-quarter results -- and yes, the growth story looks to be intact. Revenues jumped by 45% to $390.6 million. The Street, on the other hand, was looking at estimates of $383.8 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shopify's InnovationA key to the company's success has been its focus on innovation, which has continued to improve the platform for merchants. Here are just some of the highlights during the quarter: * Shopify launched the Experts Marketplace, which connects merchants with agencies and freelancers who can help with store building, marketing and custom development. * Shopify Marketing now has the ability to easily buy digital ads across Microsoft's (NASDAQ:MSFT) platforms, Yahoo! and AOL. * The company is allowing the sale of hemp or hemp-derived cannabidiol products on its platform. This is so long as various federal, state and local laws are complied with. According to BDS Analytics, the market in the U.S. is expected to jump from $1.9 billion in 2018 to $20 billion by 2024. * The company has launched Shopify Chat, which is a native chat function that allows for real-time conversations with customers. Consider that there are already other chat integrations, such as for Facebook's (NASDAQ:FB) Messenger and Apple's (NASDAQ:AAPL) Business Chat.But perhaps the most important development for SHOP stock is the company's debut of its fulfillment network. It's a sophisticated system that makes it easier for merchants to deliver their products in the US. It is based on advanced inventory technologies and backed by machine learning that helps with predictions. 6 River SystemsTo bolster the network, Shopify spent $450 million to acquire 6 River Systems. The company is a leader in automation and robot systems for fulfillment.According to 6 River Systems co-CEO Jerome Dubois: "By joining Shopify, we're changing the game of fulfillment. Together, we will help thousands of businesses improve their fulfillment operations, with an easy-to-learn solution that can more than double productivity and improve accuracy."Yet the fulfillment strategy will take time to have an impact on SHOP's financial results. But according to the earnings call, the early indications are that merchants are showing strong adoption. Bottom Line On SHOP StockIn the quarter, SHOP did post an unexpected loss of 29 cents a share, while the consensus estimate was for a profit of 11 cents a share. Although the company is investing heavily in research, development, marketing and global expansion, it is concerning that -- despite the scale of revenues -- there remain losses. This could be a problem going forward, as investors are getting more focused on profitability for tech companies.Next, competition is becoming a factor. Just some of the rivals include Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE) and Square (NYSE:SQ). There is even buzz that Amazon (NASDAQ:AMZN) will make a play for the market.In the meantime, SHOP stock is already factoring in much of the good news anyway. Unless the company sees a big growth on the top line -- with profits -- it could be tough for the shares to post market-beating gains.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Struggle to Continue Payout Hikes * 8 Consumer Stocks to Buy before Thanksgiving * 10 Stocks to Buy Regardless of Q3 Earnings The post Innovation Is Key to Shopify Stock's Success appeared first on InvestorPlace.

  • Kiplinger

    10 Money-Losing Stock Picks That Might Make You Money Anyway

    Investors spent much of 2019 gobbling up a healthy helping of recent initial public offerings (IPOs) and other companies that haven't made a penny in profits.However, the rapid rise and fall of WeWork sobered up Wall Street and knocked many of these money-losing (yet nonetheless popular) stock picks back toward some semblance of reality.A quick recap: WeWork, a privately held company that specializes in leasing office space to startups, freelancers, and employees of large companies, garnered a $47 billion valuation as recently as January 2019. But ahead of an expected September IPO, diligent investors and members of the media scrutinized the company's financials, revealing corporate governance issues and massive, growing losses that forced WeWork to shelve its offering. The company's valuation plummeted, CEO Adam Neumann was forced to step down and Japanese multinational SoftBank (SFTBY), which heavily invested in WeWork ahead of the offering, recently gave the company a $9.5 billion "rescue" package that valued it at less than $8 billion.Before the anticipated offering, New Constructs Investment Research analyst Sam McBride called WeWork the "most ridiculous IPO of 2019." Technically, he was wrong - the IPO never happened. Spiritually, he was right on the mark.WeWork's fall from grace has sent numerous recent IPOs and other net-income-deficient stocks lower. But don't give them up for dead. Unprofitable companies, once they reach a certain scale and their businesses evolve, can end up creating profits and rewarding shareholders with red-hot gains. Just ask longtime Amazon.com (AMZN) shareholders.Here are 10 stock picks that might be losing money today, but shouldn't be forever. It could be a bumpy ride until they get over that hump, but once they do, watch out. SEE ALSO: 20 More Best Stocks to Buy That You Haven't Heard Of

  • TWTR vs. WDAY: Which Stock Should Value Investors Buy Now?
    Zacks

    TWTR vs. WDAY: Which Stock Should Value Investors Buy Now?

    TWTR vs. WDAY: Which Stock Is the Better Value Option?

  • Microsoft’s earnings report will likely make believers out of cloud-software skeptics
    MarketWatch

    Microsoft’s earnings report will likely make believers out of cloud-software skeptics

    The company is well-positioned for further gains, reflecting accelerating revenue growth in the industry.

  • Splunk Stock Could Hit New 2019 Lows
    InvestorPlace

    Splunk Stock Could Hit New 2019 Lows

    Splunk (NASDAQ:SPLK) stock has been dragged down with the rest of high-growth tech. That's even as Splunk stock trades with a more palatable valuation than most of its peers and is actually profitable with free cash flow (FCF).Source: Michael Vi / Shutterstock.com It has been a volatile period for tech, even as the broader market and Nasdaq Composite hover within a few percentage points of their all-time highs. It has got some investors wondering if now may be the time to snap up shares of Splunk. That's even if the chart suggests that now may not be the best time to do so. * 10 Stocks to Sell Before December's Meltdown High-growth names like Roku (NASDAQ:ROKU), The Trade Desk (NASDAQ:TTD), Shopify (NASDAQ:SHOP) and others have taken a big hit. Amid that mess, Workday (NASDAQ:WDAY), Salesforce (NYSE:CRM), and Service Now (NYSE:NOW) have come under pressure, too. The fear here is slowing growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what does that make Splunk stock? Valuing Splunk StockWhile Splunk stock is getting caught up in the selloff, it's worth noting that its valuation isn't in the same nosebleed territory as other tech stocks. While many of the names getting hit have price-to-sales (P/S) ratios north of 20, SPLK stock does not. Shares trade at roughly 7.9 times this year's revenue estimates.Analysts expect sales to grow 28.3% this year to $2.31 billion. In calendar year 2020, estimates call for the growth rate to slow to about 22%, but that still equates to more than $2.8 billion in revenue.On the earnings front, analysts expect 43.5% growth this year to $1.91 per share. Admittedly, estimates for fiscal year 2021 do call for a slowing growth rate. However, they still expect earnings to grow 24.5% to $2.38 per share.Estimates are just that -- estimates. They can be wrong. They can be adjusted higher or lower depending on how the company does. For Splunk stock, 7.9 times this year's sales and 58 times this year's earnings may not be cheap compared to Johnson & Johnson (NYSE:JNJ) or McDonald's (NYSE:MCD). That said, these companies are not growing revenue at more than 25% or earnings at more than 40%.SPLK stock does have about $1.67 billion in long-term debt that it added to its balance sheet this year. That's roughly in-line with its cash holdings and about 65% of its cash and short-term investments.While Splunk does have positive FCF (and had decent growth), it will actually generate a FCF deficit this year due to a change in its billing process. Because of the way SPLK is now invoicing, the cash isn't received in the same manner as before. That's not ideal, but it's not the same as being FCF negative as a business. Trading SPLK Stock Click to EnlargeSplunk stock has been under constant pressure since topping out in late July. Since then, it has put in a series of lower highs, highlighted by purple arrows on the chart. It also has very well-defined support and resistance.Range resistance has come into play near $140, which has been in place for months. Range support is down near $107. The way I see the charts, Splunk stock has a few major downside zones.The first is range support near $107 and the 38.2% retracement at $106.61. Below that zone and the 2019 low of $99.49 is on the table. Just below that mark is the 23.6% retracement at $97.95. The fear is that, should range support fail to hold, SPLK stock will go on to make new 2019 lows.Should both zones give way -- the $107 and $99 areas -- then the last zone of support is near $90. This is where SPLK stock put in a triple bottom in Q4 2018.Just because we're mapping out these potential downside targets, doesn't mean Splunk stock will fall that far. But it's something investors should consider being a possibility.On the upside, I would love to see Splunk stock start to put in a series of higher lows off of this range support area. Back over the 200-day would be ideal, although that's a fair bit further from here. If range support holds, aggressive investors interested in the stock can start to get long.Otherwise, some investors will feel more comfortable either waiting for lower prices or for cleaner price action. Given the FCF change and the fact that it's caught up in a cloud selloff, it's hard to disagree with those that prefer to wait.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU and TTD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 REITs With Big Dividend Raises Coming * 10 Hot Pot Stocks to Buy * 5 Hot Stocks That Have Gone Ice Cold The post Splunk Stock Could Hit New 2019 Lows appeared first on InvestorPlace.

  • MarketWatch

    Workday stock rises after another upgrade

    Shares of Workday Inc. are up 2.5% in premarket trading Tuesday after Evercore ISI analyst Kirk Materne upgraded the stock to outperform from in line. He has a $215 target price on the stock. "We may be a bit early on this call but believe that the long-term risk/reward at current levels is attractive for one of the best [software-as-a-service] franchises in the software universe," he wrote. In particular, he said that expectations for Workday's financials product are now at a more reasonable level that reflects the time it will take for businesses to migrate to cloud-based financial systems. "In our view, we believe that adding planning and analytics to the broader financial offering will prove to be key over the long-term, and the opportunity in this market is still significant," Materne said. Workday got an upgrade from Goldman Sachs as well earlier in October, but the stock took a tumble after Workday's analyst day last week, when management highlighted a slowdown in the company's human-capital management product. The stock is off 12% over the past month, as the S&P 500 has risen 0.5%. Materne also turned bullish on Anaplan Inc. shares Tuesday while moving to the sidelines on SolarWinds Corp. and Intuit Inc. .

  • Why the crash in software stocks isn't over
    Yahoo Finance

    Why the crash in software stocks isn't over

    Software stocks have crashed. The selloff probably isn't over.

  • Alphabet, ArcBest, Workday, ServiceNow and Splunk highlighted as Zacks Bull and Bear of the Day
    Zacks

    Alphabet, ArcBest, Workday, ServiceNow and Splunk highlighted as Zacks Bull and Bear of the Day

    Alphabet, ArcBest, Workday, ServiceNow and Splunk highlighted as Zacks Bull and Bear of the Day

  • Rain In the Cloud Markets May Have Created Buying Opportunity
    Zacks

    Rain In the Cloud Markets May Have Created Buying Opportunity

    Workday's disappointing analyst day sent fear rippling through the sector, punishing cloud stocks throughout the market.

  • Goldman Sachs: 3 Buy-Rated Stocks That Could Soar
    TipRanks

    Goldman Sachs: 3 Buy-Rated Stocks That Could Soar

    One of the world’s largest investment bankers, Goldman Sachs has long been a headline-maker. The bank is the largest dealer in US Treasury securities, making it a major player in the American investment market. Goldman Sachs even featured in the Great Recession of 2008 – but in a good way. The bank paid back its Federal bailout money (received under the Troubled Asset Relief Program) in full by June of 2009 – just 8 months after taking the loan.Goldman’s reputation puts its analysts and bankers in high demand, and they have moved seamlessly between the financial and political worlds. Goldman employees have worked as financial advisors in the Treasury Department (current Treasury Secretary Steve Mnuchin is a Goldman Sachs alumn), in the EU (European Central Bank President Mario Draghi came from Goldman Sachs), and in England (in the person of Mark Carney, Governor of the Bank of England). So, when a Goldman analyst speaks, investors will listen.In the last few days, Goldman analysts have been speaking. Let’s give a listen to what they’ve been saying, and see how their stock picks measure up in TipRanks’ Stock Screener.Allegheny Technologies (ATI)The first stock on our list of Goldman picks holds a unique niche regarding modern technology and industry. Allegheny Technologies is a manufacturer of metal alloys, specialty metals, and complex metal components. The company’s top market is the aerospace and defense industry, but Allegheny is present in the oil & gas sector, the automotive sector, and the electrical industry.Specifically, ATI is a market leader in the production of nickel- and titanium-based alloys and superalloys, as well as various grades of stainless steel. The company is capable of unique forgings and precision machining in the manufacture of specialty metal parts. In short, Allegheny is indispensable in the most modern industry.An essential niche is a good place to be, especially for an industrial company. Allegheny, based in western Pennsylvania, is seeing benefits from that. Goldman Sachs analyst Matthew Korn recently upgraded his firm’s rating on the stock, from Neutral to Buy. His price target on the stock, $25, indicates confidence in a 24% upside potential. (To watch Korn's track record, click here)A stock upgrade is always a good thing. ATI got a quick jump in the markets after Korn said that, despite softness due to the Boeing 737 MAX grounding, the company’s fundamental market remains intact. Over 50% of ATI’s business is with the commercial aircraft industry, and Korn points out that globally, commercial demand for jet engines – and the specialty metals required in their manufacture – remains high.Getting to the bottom line, Korn says, “ATI is one of few stocks in our coverage with top-line growth that does not depend on a commodity price recovery. With solid upside potential and attractive valuation, we upgrade our rating to Buy.”When looking at Wall Street’s stance, Korn is not the only bull, as TipRanks analytics showcase ATI as a Buy. Out of 6 analysts polled in the last 3 months, 4 rate the stock a "buy", one says "hold," while another one suggests "sell." The 12-month average price target stands at $25.83 marking about 25% upside from where the stock is currently trading. (See Allegheny stock analysis on TipRanks)Netflix (NFLX)Well all know Netflix. The streaming company is currently the leader in the online video-on-demand market, but how it will fare in the near future may be uncertain. Both Apple and Disney are launching streaming services, scheduled to go online next month, and each company brings unique challenges to Netflix. Apple will bank on its installed base of 900 million iPhone users while trying to undercut Netflix in price. Disney will open its famed Vault, a library of hundreds of films ranging from classics like Fantasia and Bambi to the modern Pixar films. Disney also owns the Star Wars and Marvel movie franchises.Netflix won’t go down quietly, and has over $18 billion in annual revenues to use in meeting the challenge. The company currently spends the bulk of that – more than $15 billion – on content creation, and has come up with some true winners: Stranger Things and Bird Box come to mind. Netflix also spends nearly $2 billion annually on marketing.With all of that in the background, the company’s volatile stock performance this year makes sense. It had gained 44% by May, dropped since and is now only up 3% year-to-date. The problem is not on the content side, or in low revenues. Rather, NFLX share prices fell when the company reported, in July, its first drop in the US subscriber base since 2011. Netflix is the established giant in this niche; maintaining its position against the coming challengers will require the company to maintain and increase its subscriber base. Investors are generally bullish on the company, but that is tinged with caution.Heath Terry, one of Goldman Sachs’ 5-star analysts, remains sanguine of the company’s future, writing, “We expect Netflix to report 3Q results roughly in-line with the company’s previous guidance of 7.0mn net subscriber additions.” (To watch Terry's track record, click here)Regarding the coming entry of top-tier competitors, Terry says, “We see the net competitive impact given the long history of competition as less significant than programming declines in traditional television, where viewers still spend over 80% of their consumption time.”Terry rates NFLX stock a Buy with $360 price target, which implies about 25% upside from current levels. This is slightly lower than the 33% upside indicated by the $382 average price target, but still impressive. The shares are selling for $296.90, and are up nearly 4% ahead of today's earnings report.The stock’s Strong Buy analyst consensus rating comes from a whopping 25 buys given in the last three months, along with 5 holds and 1 sell. (See Netflix stock analysis on TipRanks)Workday (WDAY)This interesting tech company brings the cloud to human capital and financial management software. The company hosts its own software servers; customer buy subscriptions and access, and revenue per customer will accrue over the contract lifetime. It’s an interesting business model, that puts expenses up front while stretching the profits out indefinitely. Workday leverages the model successfully, and in 2016 recorded over $1 billion in revenue. For the fiscal year ending in January 2018, that number was up to $2.14 billion.Strong revenues and a firm market position underlie Workday’s $36 billion market cap. The company’s stock has been slipping since mid-summer, however, and is down 34% from its July peak.For 5-star Goldman analyst Heather Bellini, this actually makes WDAY a more attractive buy. She notes, “…the company's enterprise-value-to-sales multiple has fallen by more than 20% since its peak in July, compared to 14% for mid-growth software peers and 2% for high-growth software peers…” making it a more attractive entry point.She adds, “While Workday has had success in cross-selling its Financials business to existing human-capital management (HCM) customers, reaching 25% penetration of its core HCM base, our industry conversations indicate that over the past year, Workday has had success landing new customers with Financials and is steadily building a list of referenceable large enterprise customers, while expanding the company's international market presence.”Bellini also points to management’s optimism. She quotes company co-founder and CEO Aneel Bhusri: “This year, the company focused on product enhancements and the continued incorporation of new technologies such as AI/ML and blockchain to augment and automate processes, ranging from recruiting to accounting.”Bellini’s bullish outlook led her to maintain a "buy" rating on WDAY stock with a $223 price target. Her price target suggests an upside potential of nearly 40% to WDAY. Bellini is impressed by the company’s obvious strength, business model, and clear-headed management, and sees the recent dip as a chance to enter a prime stock at a discount.Workday holds a Moderate Buy from the analyst consensus, as some market watchers are cautious considering the stock’s recent slip. Still, WDAY has 12 "buys" given in the past 3 months. The average price target of $216 implies an upside of nearly 37% from the $158.39 trading price. (See Workday stock analysis on TipRanks)

  • Workday Stock Has Its Work Cut Out for Itself
    TheStreet.com

    Workday Stock Has Its Work Cut Out for Itself

    During Wednesday's Mad Money program Jim Cramer noted that a number stocks recently had strong gains which came at the expense of the high-growth cloud stocks, with names such as Workday Inc. plunging 20% in recent days as investors re-evaluated these once hot stocks. Let's check out the charts of WDAY to see if there is more pain ahead for investors. In the daily Japanese candlestick chart of WDAY, below, we can see that prices made a peak in early July and then turned lower.

  • Benzinga

    PreMarket Prep Recap: Stormy Outlook For Cloud Stocks, Opioid Makers Rally On Settlement Talks

    On Wednesday's PreMarket Prep show, earnings reports and ratings changes took a backseat to the negative news for cloud stocks and the positive news for opioid-associated drug distributors. Stormy Outlook ...

  • 5 Top Stock Trades for Thursday: ADBE, NFLX, ABT
    InvestorPlace

    5 Top Stock Trades for Thursday: ADBE, NFLX, ABT

    The indices did not move too much on Wednesday, but a handful of tech stocks were hit hard on the day. Let's look at a few of the top stock trades going into the latter half of the week. Top Stock Trades for Tomorrow No. 1: Adobe (ADBE)Adobe Systems (NASDAQ:ADBE) came under pressure Wednesday following a downgrade from Citi analysts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares have been trying to break out over downtrend resistance (blue line) and were actually succeeding before Wednesday. However, the tepid bullish action was not enough to withstand today's selling.Nor were the 20-day and 200-day moving averages, as ADBE stock gapped below both metrics. However, it's finding some reprieve from the 38.2% retracement. Now investors want to know, can ADBE reclaim the 200-day and downtrend resistance or are lower prices in store?If it's the latter, look for a decline down into the $258 to $260 area. There it will find a notable level of support as well as the 50% retracement. If that fails to hold, ADBE stock may be in trouble. On the upside, the charts are pretty cluttered until Adobe can clear the 50-day moving average. Top Stock Trades for Tomorrow No. 2: Netflix (NFLX)Netflix (NASDAQ:NFLX) is very much a mixed picture ahead of the company's earnings report on Wednesday after the close.On the plus side, shares have broken out over downtrend resistance (blue line) and are maintaining above the 20-day moving average. On the downside, they are stuck below the 50-day moving average and the 38.2% retracement.So what now?Should shares decline, look to see if the 23.6% retracement at $267.75 can support the name. If not, $260 could be on deck, with the September low of $252.28 below that. Below the September low and the December low is possible.On the upside, see that NFLX reclaims and holds the 50-day moving average and 38.2% retracement. Above that opens the door to the 50% and 61.8% retracements at $308.61 and $326.81, respectively. Top Stock Trades for Tomorrow No. 3: Abbott Labs (ABT)Abbott Labs (NYSE:ABT) was mixed on Wednesday after it reported earnings. However, with clear-cut support nearby and breakout potential, it's worth watching.Look at the past year of action. Shares have a consolidation period, then tend to break out to new highs and consolidate again. The old highs also tend to become support.Luckily, the prior highs near $79 to $80 also intersect with the 200-day moving average and 61.8% retracement. That makes it a pretty solid risk/reward area for investors. Below $79 and traders may consider stopping out.On the upside, see if ABT stock can break out over downtrend resistance and the 50-day moving average. Over it and a move back to $86-plus could be in the cards. Top Stock Trades for Tomorrow No. 4: ServiceNow (NOW)ServiceNow (NYSE:NOW) was hammered on Wednesday and it leaves the stock clinging to support. Shares are just above the 200-day moving average and range support near $250.Below $250 and the October low of $243.54 is on the table. Below that and the stock could struggle a bit.If support holds, look for NOW to reclaim the 50-day moving average and rally back up to range resistance near $275. Over $275 and perhaps ServiceNow could retest the backside of its prior uptrend (blue line). Top Stock Trades for Tomorrow No. 5: Workday (WDAY)Thought ServiceNow investors were having a bad day? Just look at Workday (NASDAQ:WDAY), which was hit even harder on the day.The 61.8% retracement held WDAY in check on Tuesday, and on Wednesday the 38.2% retracement is acting as bulls' saving grace. Below the 38.2% and Wednesday's low, and the $145 mark could be on the table.If current support at the 38.2% retracement holds, look for WDAY to reclaim the $165 to $166 area. Above that and it will also have to reclaim downtrend resistance.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post 5 Top Stock Trades for Thursday: ADBE, NFLX, ABT appeared first on InvestorPlace.

  • Cloud software stocks slammed amid Workday fears, Morgan Stanley doubts
    MarketWatch

    Cloud software stocks slammed amid Workday fears, Morgan Stanley doubts

    Workday Inc. shares were getting crushed Wednesday and dragging on the cloud software space Wednesday after several analysts cut price targets on the stock after the human capital management software company’s analyst day.

  • Splunk Stock Actually Is Cheap, But Why Is That?
    InvestorPlace

    Splunk Stock Actually Is Cheap, But Why Is That?

    To many investors, the idea that Splunk (NASDAQ:SPLK) stock is cheap seems ludicrous. Splunk's guidance calls for negative operating cash flow this year. And Splunk stock trades at roughly eight times its sales (excluding its net cash) and 50 times analysts' average 2020 earnings per share estimate.Source: Michael Vi / Shutterstock.com Splunk stock hardly seems like a value play. But it does look at least inexpensive compared with its peers. Its price-sales ratio is one of the lowest of any company whose revenues are growing at a 30%+ clip.In recent quarters, Workday (NASDAQ:WDAY) and Paycom Software (NYSE:PAYC) posted similar revenue increases as SPLK. WDAY trades at over 11 times its revenue, and PAYC's price-sales ratio is 17. Other software companies are growing at rates similar to SPLK and have higher valuations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut why is SPLK stock trading at a discount to some of its peers and why has that situation persisted? SPLK stock has gained roughly 20% over the past year, but that figure is skewed by timing. Splunk stock actually sits below where it was after its fiscal Q2 results which were released back in August 2018.There are interesting arguments for why the relatively low valuation of Splunk stock has created a buying opportunity. There are also interesting arguments as to why SPLK stock deserves the discount. Overall, I'd lean towards the bullish argument. But investors who are considering buying Splunk stock need to consider multiple points. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) The Case for Splunk StockSplunk stock is not necessarily cheap. Its valuation is still higher than that of the average stock, and for good reason.Splunk's log-management offerings are a direct play on Big Data. And the company's growth has been impressive. Its revenue increased 41% in fiscal 2017 and jumped 38%+ in the following two years. Its sales are expected to increase roughly 28% in FY20.Meanwhile, as noted earlier, SPLK stock has stalled out, trading sideways for the last 13+ months. That performance, combined with the company's revenue and profit growth, has caused the multiples of Splunk stock to fall. And bulls would argue that some of the relative weakness has come from a misunderstanding surrounding the company's cash flow guidance.After all, Splunk stock fell after its Q2 results partly because of its cash flow guidance. Splunk's guidance went from $250 million to -$300 million, a seemingly huge change. But bulls would argue that the shift was caused by the company's transition to a subscription model. That transition creates uneven sales growth, meaning the guidance change indicates little, if any, alteration of Splunk's long-term cash flow.That guidance overshadowed a strong report, as SPLK's software revenue jumped 46% year-over-year. The bull case is that the company's growth outlook remains intact, while short-term concerns have moved SPLK stock to a lower and more attractive valuation.Wall Street analysts seem to agree; their average price target on SPLK stock is about 25% above its current price. Last month, Raymond James said the company's new pricing model could boost Splunk stock in the near-term. The Case Against SPLK StockThe bull case on SPLK is intriguing, and I wouldn't be surprised to see SPLK stock break out at some point. But the shares pose some risks as well.For one, SPLK might well be cheap on a relative basis, but that doesn't guarantee that the shares will rise. Eight times revenue, even with Splunk's attractive gross margins, still prices in quite a bit of growth. Moreover, Splunk stock lost about a third of its value during last year's Q4 stock-market selloff. If the stock market tumbles again, SPLK stock will fall further.The other considerable risk is on the competitive front. Splunk is the leader in log management, but it has some tough competitors. Elastic (NYSE:ESTC), for example, offers an open-source ELK Stack which allows customers to build their own log management systems, as opposed to buying them from Splunk.Datadog (NASDAQ:DDOG), which recently launched its IPO, is another competitor. Datadog offers a unified platform that includes log management, but also infrastructure, cloud, and application-performance monitoring. DDOG is trading at roughly 20 times its revenue, suggesting that investors are bullish on its outlook.Both Datadog and Elastic have posted stronger revenue growth than Splunk of late, although both are doing so from lower revenue bases than SPLK. Hope for a Better Entry Point?For software-as-a-service (SaaS) investors, then, SPLK probably is at the top of the list. Its valuation might be questionable, but it is quite attractive relative to what investors have been willing to pay for growth stocks in recent years.But I'm not sure Splunk stock quite gets to the point of being compelling for those investors who aren't focused on growth stocks.SPLK is facing risks. The shares probably can grow into their forward price-earnings multiple of 40+. But it only takes one earnings miss for competitive risks to move to the forefront of investors' minds.Given the performance of Splunk stock over the past 12+ months, it does seem worth staying on the sidelines and hoping for a better entry point. SPLK probably is cheap, but it's a little too cheap. And there are reasons why it could get even cheaper.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post Splunk Stock Actually Is Cheap, But Why Is That? appeared first on InvestorPlace.

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